What’s new with FSA programs and the 2018 Farm Bill -

Producers may change elections annually during the 2021 through 2023 crop years.

Producers on farms where the cropland was planted to grass or pasture (including cropland that was idle or fallow) from Jan. 1, 2009, through Dec. 31, 2017, are ineligible for ARC/PLC payments from 2019 through 2023.

Owners can update the farm's PLC payment yield beginning with the 2020 crop year.

Dairy Margin Coverage (DMC) Program

Replaces the Margin Protection Program for Dairy (MPP).
Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on the existing margin coverage rates.
The maximum level for operations with covered production history less than 5 million pounds is increased to $9.50.
A dairy operation enrolled in MPP any year from 2014-17 may be eligible to receive a refund of premiums if the premium paid exceeds the MPP payments received.
Producers who enrolled in the Livestock Gross Margin for Dairy Cattle program (LGM) in 2018 may enroll in 2018 MPP retroactively.

Conservation Reserve Program (CRP)

The CRP acreage cap gradually increases to 27 million acres by 2023.
At least 8.6 million acres devoted to continuous practices and 2 million acres to grassland.
Two pilot programs are authorized: Clean Lakes, Estuaries and Rivers Initiative (CLEAR 30) and the Soil Health and Income Protection Pilot Program (SHIPP).
The annual rental payment is limited to 85 percent of the estimated average county rental sale for general enrollment and 90 percent of the estimated county rental rate for continuous enrollment.

Marketing assistance loan programs (commodity loans)

Extends loan authority through 2023 for wheat, corn, grain sorghum, barley, oats, upland cotton, extra-long staple (ELS) cotton, rice, soybean, other oilseeds, dry peas, lentils, chickpeas, graded and non-graded wool, mohair, honey, peanuts and sugars (beet and cane).
Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are no longer subject to payment limitations, actively engaged in farming and cash-rent tenant rules.
Loan rates increased for all commodities except minor oilseeds, wool, mohair, honey, peanuts and upland cotton.

Noninsured Crop Disaster Assistance Program (NAP)

Buy-up NAP coverage is now part of permanent program authorization.
Basic coverage has a payment limitation of $125,000 per person and legal entity, while the payment limitation for buy-up coverage is a separate $300,000.
Service fees for applications for coverage have increased, while the premium amounts for buy-up NAP coverage are unchanged.

Farm loan programs

A farmer or rancher may receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. No longer limited to a combined total of $50,000 for both microloans.
The Direct Operating Loan limit increases to $400,000, and the Guaranteed Operating Loan limit increases to $1,750,000.
The Direct Farm Ownership Loan three-year-experience requirement includes more allowable experiences to qualify.
The Direct Farm Ownership Loan limit increases to $600,000, and the Guaranteed Farm Ownership loan limit increases to $1,750,000.
Equitable relief may be granted on direct farm ownership, operating or emergency loans to certain farmers or ranchers who failed to comply with the terms of the loan due to an action of, or the advice of, an FSA employee.
Socially disadvantaged and beginning farmers will receive a guarantee equal to 95 percent, up from 90 percent.
Allows borrowers who have received a debt write down or restructuring of a farm loan to be eligible for an emergency loan.

Disaster programs

The Livestock Indemnity Program (LIP), the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish program (ELAP), the Livestock Forage Disaster Program (LFP) and the Tree Assistance Program (TAP) remain authorized and have minimal changes.
“Cold” is now considered a LIP-covered eligible loss for unweaned livestock without regard to any management practice, vaccination protocol or lack of vaccination.
LIP now covers diseases that are caused or transmitted by a vector and are not controlled by vaccination or an acceptable management practice. These diseases were previously covered under ELAP.
ELAP payments are no longer subject to payment limitation.
For beginning or veteran farmers or ranchers, the reimbursement costs for TAP increased from 65 percent to 75 percent for replanting lost trees, bushes and vines; and from 50 percent to 75 percent for the cost of pruning, removal and other costs incurred for salvaging existing trees, bushes and vines.

Other farm bill changes

The definition of “family member” for a farming operation has expanded to include first cousin, niece and nephew (great-grandparent or grandparent, parent, child [including legally adopted children and stepchildren] grandchild, great-grandchild, sibling of the family members in the farming operation and spouses of family members). This term is used to identify joint operations that are comprised entirely of family members, which are not subject to the restriction on the number of members that may qualify as actively engaged in farming.